Posted on: 25th Jan, 2008 02:13 pm
My Mom has been very sick. She owns her house but has no medical insurance. I am thinking about quit claim deeding her house to myself. Is this a good idea or should I use some other route like a living will? Is it true that she will not be able to receive medicaid for several months if she does this? Who pays the capital gain?? And how much?? She paid $47,000 for her home and now is appraised at $180,000. Can someone please shed some light on my problem??? Thank you
They have cracked down on medicaid fraud lately. They go back 5 years now to see if there were any assets. So, if you transfer the house now, you will not be eligible for medicaid for 5 years.
Tax issues are more complicated. Check wtih a CPA.
Tax issues are more complicated. Check wtih a CPA.
Hi bfordf,
Welcome to the forum.
If you mother quitclaim the property to you now, she will not be eligible for Medicaid.
Your mother will need to pay gift tax and you will have to pay capital gain tax as it will be considered as you income.
To know about capital gain tax exemption tou can check out this discussion at http://www.mortgagefit.com/predeal/propertysale-tax.html
Feel free to ask if you have any further questions.
Best of Luck.
Larry
Welcome to the forum.
If you mother quitclaim the property to you now, she will not be eligible for Medicaid.
Your mother will need to pay gift tax and you will have to pay capital gain tax as it will be considered as you income.
To know about capital gain tax exemption tou can check out this discussion at http://www.mortgagefit.com/predeal/propertysale-tax.html
Feel free to ask if you have any further questions.
Best of Luck.
Larry
